AriZona Real Estate insider!

When it comes to selling industrial properties in the bustling Phoenix-metro area, including areas like Scottsdale, Tempe, Chandler, Gilbert, Laveen, and Goodyear, I’ve learned firsthand the importance of partnering with a specialized commercial real estate agent or broker. Industrial properties cover a wide spectrum, ranging from Warehouse/Distribution Buildings to Manufacturing Buildings (also known as heavy industrial buildings), Refrigeration/Cold Storage Buildings, and even Telecom/Data Hosting Centers (including Switching Centers, Cyber Centers, Web Hosting Facilities, and Telecom Centers). In essence, these properties encompass any space used for manufacturing, auto shops, warehouses, factories, storage facilities, or research and development. So, if you’re considering selling your industrial property, it’s crucial to have an expert by your side to navigate the complexities of the market and ensure a successful transaction.

Find an agent/broker:

Many agents that sell industrial property only handle this type of commercial real estate. This is because there are many unique issues that apply only to industrial real estate. Therefore, you need to find the right real estate agent, broker, or company. If this is your 1st option you can forget about the rest, your real estate agent/broker/company of choice will handle the rest

Many agents who specialize in selling industrial property exclusively focus on this type of commercial real estate. This specialization is necessary because industrial real estate comes with unique issues that may not apply to other types of properties. Therefore, it’s essential to find the right real estate agent, broker, or company for your needs. Once you’ve found the right professional, they will take care of the rest. An experienced Industrial Property specialist should consider the following factors when evaluating pricing and marketability:

• Comparable (comp) property values
• Market rents for comparable properties
• Location and access
• Floor plan
• Available services near the property
• Overall condition of the property
• Any specialized functions or modifications to the property
• Environmental issues (Phase I or Phase II)
• Rent roll

Location & Access:

In the Phoenix-Metro area, easy access to freeways, trains, or shipping routes is crucial for industrial properties, benefiting manufacturing, warehousing, and distribution. This proximity is particularly valuable for large internet companies and entrepreneurs utilizing Arizona’s distribution networks, enhancing property value significantly.

For auto shops or mechanic’s garages, proximity to freeways or major streets like Camelback, Scottsdale Rd, or University is advantageous.

Considerations for truck access, loading docks, overhead doors, and parking availability are also vital factors influencing property value. Indoor parking is especially desirable for security and maintenance purposes.

Additional considerations include:

• Floor Plan: Ceilings height and column placement influence property value, with cubic volume often prioritized over square footage. A “clear span” building, without columns, is highly prized.
• Services: Electrical capacity and internet capability are essential considerations, particularly for industries reliant on high amperage electricity or computer servers. Access to data lines like Fiber optic, ISDN, or T1/T3 is crucial, even in remote areas.
• Overall Condition of the Property: Full disclosure about any property issues is crucial to avoid complications during the sale process, particularly regarding environmental issues. Phase I, II, and III inspections may be necessary, with costs often negotiated between the owner and buyer.
• Specialized Function: Buildings with specialized features like refrigeration units or hydraulic car lifts may attract specific tenants but could pose environmental risks.

Environmental issues, especially contamination liabilities, can significantly impact property value and saleability. Phase I, II, and III inspections may be necessary to assess and address these concerns, with costs and responsibilities negotiated between parties.

Navigating these considerations is essential to maximize property value and ensure a smooth sale process, guided by expert advice and thorough due diligence.

One of my recent commercial/industrial sales was Larry’s Auto Service, located at 4502-4506 S Central Ave, Phoenix, AZ. As the representing Realtor, I assisted the seller throughout the transaction. Fortunately, the buyer opted to pay in cash; however, had financing been involved, the seller would have been required to conduct, at minimum, a Phase 1 environmental test. Such assessments are crucial as no bank or financial institution will provide lending without them (Phase I, Phase II, Phase III) on file and deemed satisfactory. My seller provided full disclosure about the property, including details about tank maintenance, oil removal procedures, cleanup efforts, and storage practices. This transparency instilled confidence in the buyer, who trusted my seller, and ultimately led to a successful closing of escrow.

Considering selling your industrial property investment in the Phoenix metro area and purchasing another? Perhaps you should explore the option of a 1031 Exchange.

The current tax code offers a 1031 Exchange, allowing you to defer paying capital gains taxes on the proceeds from the sale of your industrial or manufacturing property when you reinvest in another investment property.

This exchange, also known as a Tax-Deferred Exchange, postpones tax payments until a future date if you choose to cash out of your investment entirely or partially.

A significant advantage of a 1031 exchange is the flexibility it provides. You’re not limited to purchasing another industrial building; you can invest in various income-producing properties or even multiple properties. For example, you could acquire an apartment complex, multiple rental homes, or even a farm.

However, navigating the intricacies of a 1031 exchange can be complex, which is why I advise anyone considering this option in the Phoenix metro area to consult with an attorney and their accountants first. Seeking professional advice ensures you understand the implications and requirements of a 1031 exchange and can make informed decisions about your investment strategy.

Selling an industrial building requires unique skills and specialized knowledge, as demonstrated by the expertise of Juan Pesqueira.

In addition to mastering the intricacies of industrial properties, Juan Pesqueira excels at promoting properties and captivating potential buyers through effective marketing strategies. Moreover, he skillfully negotiates on behalf of his clients and guides them through the complexities of transaction paperwork.

Your next step is to decide if you want to sell your property. We invite you to take action by choosing one of the following options:

1. Request a Free Property Price and Consultation: Schedule a confidential meeting with Juan Pesqueira to determine the price of your property in today’s market. This service is complimentary, and you are under no obligation to use our services.
2. To schedule your consultation, you can reach Juan Pesqueira – Attorneys Realty at 480.458.8007 (Please note that this cell phone does not have voicemail, so if Juan is unavailable, leave a detailed message), or call the office at 480.767.6900. Alternatively, you can send an email to Pesqueira2@cox.net.

Take the first step towards selling your property with confidence by reaching out to Juan Pesqueira today.

Sold Industrial Property

4334 – 4140 E WINSLOW AVE, Phoenix, AZ 85040 | SOLD for FULL ASK in 16 days… Industrial building/warehouse! I-1/A-1 LIGHT INDUSTRIAL zoning allows for a variety of uses. The property is located just off University Dr. in Phoenix. Close to Tempe, Sky Harbor Airport, Phoenix metro, and all freeways. Comprised of 3 different parcels (124-49-049, 124-49-050, 124-49-051/4334 – 4340 – 4140 Winslow ave) totaling 24,869 sf / .57 +/-acre lot being sold as one. Fenced and secured. Highly traffic location, with easy access/exit for any business who operates in this location. The 3380 +/- building/ warehouse has 2.5 bathrooms, a reception and sitting area, private office, bay door and excellent potential for a variety of businesses.

SOLD in 9 months/98% from full asking price… Auto Mechanic/body shop building! Amazing hard to find C-3 zoning along Central Avenue. Comprised of 3 different parcels totaling 20,368 sf / .47-acre lot being sold as one. The 4900 +/- building, known as LARRY’s AUTO SERVICE has been a successful business for 40+ years. This Solid block old school auto mechanic/shop building has Central Avenue frontage of 180 feet +/-. Highly traffic location, with easy access/exit for any business who operates in this location. The building itself features 12 ft ceilings, wired with three phase electricity including air compressor. There are three single post inground lifts, three post twin inground lifts, fronted alignment rack, plus ample room for work benches and tool boxes. The shop entrance has a pull through, one sliding door (north side) and 10ft roll up door (south side). Access to both front and back locks through the shop or through both gates. Back lot has attached steel canopy covering three lifts. The shop also has a waiting room, public & private restroom, employee breakroom, compressor room, and office. The back office has separate entrance. The c3 zoning allows for many uses/developments. The current building is turnkey for a car repair shop business owner/end user + has 8 camera security system in place. It’s also an excellent opportunity for a rental income producer or for future development. The two lots to the south of the subject are owned by city of Phoenix in which have expressed they would like to sell.